Corporate Grapevine     

Published: September 30, 2024
Updated: September 30, 2024

Religare keeps Burmans at bay

The Burmans have initiated a hostile takeover bid for Religare Enterprises, which has undergone a significant transformation under the leadership of Rashmi Saluja, a physician by training. Since becoming chairperson, Saluja has overseen the repayment of Rs 9,500 crore in bank loans, even as competitors like IL&FS and DHFL faced collapse.

This turnaround occurred amid the challenges of the Covid-19 pandemic, and Saluja successfully kept the company out of the National Company Law Tribunal (NCLT), despite regulatory issues stemming from Rs 50,000 crore in round-tripping associated with the previous promoters, the Singh brothers. Saluja’s focus on restoring trust and credibility led to the repayment of all loans across four subsidiaries.

In response to the Burmans’ open offer for a takeover, Saluja and the board pushed back, bringing to light various concerns about the Burmans, which were reported to the RBI and other regulatory bodies.

This situation has been pending for over a year. Meanwhile, SEBI, typically seen as a neutral party, has appeared to favour the Burmans, raising concerns within the finance ministry. The RBI, however, has not yet approved the takeover.